The Innovative Payments Association (IPA) has submitted a comment letter to the Federal Election Commission (FEC) addressing a proposed rulemaking related to contributions made using prepaid cards. While we recognize the importance of maintaining transparency in campaign financing, the IPA emphasizes that prepaid cards are already issued by highly regulated entities and are subject to stringent compliance under the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) requirements.
Prepaid accounts play a critical role in financial inclusion, offering millions of unbanked and underbanked Americans access to secure and efficient financial tools. These accounts are particularly valuable for individuals and government programs, delivering faster and safer transactions than traditional methods. The proposed amendments could inadvertently stigmatize these essential tools, limiting their use and impact. Key Points from the IPA's Comment Letter:
We encourage you to read the full comment letter to explore how the existing regulatory framework addresses concerns raised in the petition, ensuring prepaid accounts remain a trusted and inclusive financial tool.
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The Innovative Payments Association (IPA) has submitted a letter to the Federal Deposit Insurance Corporation (FDIC) addressing the proposed rule on recordkeeping for custodial accounts with transactional features. This rule is intended to enhance the FDIC’s ability to determine deposit insurance coverage quickly in the event of an institution's failure.
In our response, we acknowledged the importance of the proposed rule while urging the FDIC to refine its scope. Specifically, we recommended excluding products like gift cards, single-load payment devices, and similar offerings that do not function as substitutes for traditional deposit accounts. We also highlighted concerns about the potential compliance burden and suggested extending the implementation period from one to two years. To learn more, download the comment letter. Stay informed about developments in the financial services industry by following the IPA. IPA Urges FDIC to Preserve Key Brokered Deposit Rules to Protect Innovation and Consumer Access11/13/2024 The Innovative Payments Association (IPA) recently submitted a comment letter to the FDIC concerning proposed rule changes to brokered deposits. We voiced strong concerns about the elimination of key exceptions, such as the "Enabling Transactions Exemption" and exclusive deposit relationships, which have provided essential clarity and promoted financial innovation. IPA urged the FDIC to retain these exceptions to avoid stifling fintech-bank partnerships that have expanded consumer access to critical financial services.
Moreover, treating fintech deposits as inherently risky "brokered deposits" threatens innovation and limits consumer options. We emphasize the need for data-driven analysis and further study before implementing changes that may adversely impact consumers, innovation, and competition in financial services. For more details, download the comment letter. The Innovative Payments Association (IPA) recently submitted a comment letter to federal regulators, who are considering new rules for partnerships between banks and fintech companies. The IPA urges the agencies to consider the potential negative consequences of additional regulations before imposing them.
The IPA believes these partnerships offer significant benefits to both consumers and the financial system, and, in the comment letter highlight several key points:
You can download the full comment letter below, or contact the IPA. The Innovative Payments Association (IPA) recently filed a comment letter criticizing a proposed rule by the Consumer Financial Protection Bureau (CFPB) that would classify earned wage access (EWA) products as debt under Truth in Lending Act (TILA) regulations.
Key Points of the IPA's Argument:
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